K3/3, DLF Phase 2, Gurgaon +91 9711600250 ab@lawcify.com

How to Create a Franchise Agreement

Simplify your business expansion with a professionally drafted Franchise Agreement by Lawcify — clear, legal, and customized.

Initial Consultation

Discuss your franchise model, terms, and requirements with Lawcify experts.

Share Key Details

Submit information about franchisor, franchisee, brand guidelines, and operational terms.

Draft Preparation

Lawcify drafts a customized Franchise Agreement ensuring clarity on rights, fees, and obligations.

Review & Finalize

Review your agreement and get it digitally signed. Receive your legal Franchise Agreement ready for execution.

Franchise Agreement

Secure your brand and business expansion with a professionally drafted Franchise Agreement by Lawcify. Clearly define the rights, obligations, and terms between franchisor and franchisee.

What is a Franchise Agreement?

A Franchise Agreement is a legal contract that governs the relationship between a brand owner and a franchisee. It defines rights to use trademarks, operational rules, and payment structures.

Lawcify ensures your Franchise Agreement covers all aspects — from licensing and territory to marketing and renewal terms — making your business expansion smooth and risk-free.

Overview

A Franchise Agreement is a legally binding contract between a brand owner (franchisor) and an individual or company (franchisee). It grants the franchisee the right to operate under the brand’s name, access business systems, and benefit from the brand’s reputation — while ensuring both parties’ rights and obligations are clearly defined.

With Lawcify, you can get a fully tailored Franchise Agreement, drafted to meet Indian legal standards and your specific business model, helping you expand safely and professionally.

Benefits

  • Proven Business Model: Franchisees leverage an established brand and operational system, reducing startup risks.
  • Brand Recognition: Access to a recognised brand name and existing customer base enhances credibility instantly.
  • Support & Training: Franchisors provide training, operations manual, marketing assistance and ongoing support.
  • Faster Growth: Launch your business faster and scale with less uncertainty compared to a standalone startup.
  • Legal Clarity: A well-drafted Franchise Agreement brings transparency to rights, duties, fees, renewals and exit arrangements.

At Lawcify, we ensure your Franchise Agreement reflects all these benefits clearly and protects your interest from day one.

Components of a Franchise Agreement

Key components that every Franchise Agreement should include in India:

  • Franchise Grant & Territory: Defines the brand rights and geographic area where the franchisee can operate. :contentReference[oaicite:1]{index=1}
  • Fees & Royalties: Details initial setup fee, ongoing royalty or percentage of sales paid to franchisor. :contentReference[oaicite:2]{index=2}
  • Operations & Support: Outlines training, manuals, marketing support and quality standards. :contentReference[oaicite:3]{index=3}
  • Intellectual Property Rights: How the franchisee uses trademarks, logos, business methods and brand identity. :contentReference[oaicite:4]{index=4}
  • Term, Renewal & Termination: Duration of the agreement, renewal conditions, and exit or transfer clauses. :contentReference[oaicite:5]{index=5}

Lawcify ensures all these components are covered accurately, so your franchise relationship remains clear, enforceable and low risk.

Details You Should Know

When you sign a Franchise Agreement, pay close attention to details like territory exclusivity, marketing contributions, minimum performance criteria, sub-franchise rights, and audit rights.

Lawcify helps you review each detail, protect your interests, and negotiate favourable terms while drafting your franchise contract.

Types of Franchise Agreements

Some common types you will encounter:

1️⃣ Product Distribution Franchise Agreement

The franchisee sells the franchisor’s products within a defined area but may not follow full business systems.

2️⃣ Business Format Franchise Agreement

The franchisee uses the entire business model, branding, systems, support and operations manual of the franchisor.

3️⃣ Area Development / Master Franchise Agreement

The franchisee gets regional rights (perhaps sub-franchise rights) to open multiple units within a territory.

Lawcify guides you to choose the right type of franchise based on your investment, goals and long-term vision.

Process to Sign a Franchise Agreement

  1. Initial Discussion & Franchise Suitability: Meet with the franchisor, review brand model and assess market potential.
  2. Due Diligence: Check financials, brand reputation, performance of existing outlets and franchise operations.
  3. Negotiation & Drafting: Define fees, support terms, territory, training, performance criteria and rights.
  4. Agreement Signing & Payment: Sign the contract, pay initial franchise fee, and agree on royalty schedule.
  5. Setup & Launch: Use the franchisor’s brand, training, systems and launch your outlet under the franchise contract.

Lawcify handles the contract drafting, review and finalization process — making franchising simpler and legally safe for you.

Why Lawcify?

Choosing Lawcify means you get access to experienced legal professionals who specialise in corporate contracts and business expansion. Your Franchise Agreement will be customised to your brand, compliant with Indian law, and structured to protect both parties’ rights clearly and fairly.

  • Specialised in franchise contracts and licensing arrangements.
  • Transparent pricing and fast turnaround.
  • End-to-end service: drafting, negotiation support, execution and digital filing.
  • Trusted by brands expanding in India with 100% legal compliance.

With Lawcify, your franchise expansion is backed by the right legal foundation — giving you confidence to grow.

Get Free Consultation

Frequently Asked Questions

Everything you need to know about Franchise Agreements and how Lawcify helps businesses expand legally and confidently.

A Franchise Agreement is a legal contract between a franchisor (brand owner) and a franchisee (business operator) that defines the rights, duties, and obligations of both parties. It allows the franchisee to operate using the franchisor’s brand name, products, and proven business system under agreed terms.

It protects both the franchisor and the franchisee by setting clear rules for fees, territory, training, brand usage, and dispute resolution. A well-drafted Franchise Agreement ensures transparency and prevents future misunderstandings.

The main components include franchise fees and royalties, brand rights, duration, renewal terms, marketing obligations, and quality control standards. Lawcify ensures these terms are customized to your business needs.

Typically, a Franchise Agreement lasts between 5 to 10 years, depending on the business model and investment amount. Renewal terms are usually included to continue the business after the initial period.

Common types include Product Franchise, Business Format Franchise, and Master Franchise. Each type offers different levels of control, support, and investment for franchisees. Lawcify helps you identify the best option for your brand expansion.

Yes. A Franchise Agreement is legally enforceable under the Indian Contract Act, 1872. Both franchisor and franchisee must follow the terms mentioned. Any breach can lead to legal consequences, including penalties or termination.

Violation may lead to cancellation, monetary penalties, or legal action. For example, if the franchisee uses the brand name beyond permitted terms, the franchisor can terminate the agreement and claim damages.

Yes, early termination is possible under conditions like non-payment, brand misuse, or breach of terms. Lawcify drafts agreements that clearly define exit clauses and protect your rights during termination.

Yes, renewal terms are usually pre-defined in the contract. The franchisor and franchisee can mutually agree to extend the term under new or existing conditions.

Lawcify offers legally sound and business-friendly Franchise Agreements drafted by experts. We ensure full compliance, clear obligations, and smooth execution so that both parties can focus on business growth without legal risks.

© Lawcify